ABSTRACT: In this paper, author tries to emphasize the fundamental characteristics of the positive-legal status of political regime of Bosnia and Herzegovina. Bosnia and Herzegovina has applied the model of consociational democracy (all four elements: grand coalition, mutual veto, proportionality and segmental autonomy) which excludes effective participation of citizens in decision-making. The constitutional structure of Bosnia and Herzegovina is dominated by direct democracy. It is also based on the fight of political elites. The paper discusses perspectives of direct democracy in Bosnia and Herzegovina. This paper also focuses on the possibility of merging the civil and ethnic in the functioning of constitutional-political system of Bosnia and Herzegovina. An analysis of the democratic potential of the two most important state bodies for the implementation of any democracy—legislative representative body and the constitutional court will be made.